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How to Trade in the Hong Kong Stock Market Using the HKSE Stock Screener

A stock screener can help you when trading in the Hong Kong stock market, stocks particularly. First, some valuable information about this market.

The main representative body of the Hong Kong stock market is the Hong Kong Stock Exchange, located in Victoria City, Hong Kong. This organization is second only to the Tokyo Stock Exchange within Asia, in terms of market capitalization. It is also the fifth largest exchange in the world. Its holding company is the Hong Kong Exchanges and Clearing.

Companies and Trades Within the Hong Kong Stock Exchange

This exchange has over 1400 companies that operate within it, having an overall market capitalization of HK$16.985 trillion. Many of the company stocks traded here are at low prices of HK$4 or less per share, while penny stocks are at the price of HK$ 0.50 and less.

Each of the stocks that are traded within the HKSE is given its own board lot size, and most purchases will be made in multiples of this amount. Any purchases that are made in other amounts are executed elsewhere, in the “odd lot market”.

The main market index is the Hang Seng index. It is a freefloat-adjusted index weighted according to market capitalization. It is used for monitoring and recording the daily changes within the HKSE’s largest companies, 48 in number, which represent nearly sixty percent of market capitalisation within the market.

History

Although informal securities exchanges are known to have been in place in Hong Kong since 1861, the first formal securities exchange was started there in the late 1800s. The Hong Kong Stock Exchange has remained the main exchange over the years, having monopolized the market between 1947 and 1969.

The computer-assisted trading system was initiated in the exchange on the 2nd of April 1986 while the AMS (Automatic Order Matching and Execution System) was launched in 1993 and later replaced in October 2000 with the generation system (AMS/3).

How to Trade Within The Hong Kong Stock Market

If you are thinking of investing within this market, you will want to know the best way to do that. What is the best way to trade profitably in any market? First of all, you need the right knowledge, and secondly, you need the right tools.

Let’s look at one essential tool. As stated earlier, a stock screener tool will assist you when trading in stocks. The stock screener is a piece of highly advanced software that allows an investor to clearly analyze and segregate the stocks that he wants to trade in based on the exact criteria that he specifies.

So, for example, if you as an investor need to decide what stocks will be financially profitable and also worth your time and effort, you could use a stock screener tool to select specific stocks based on certain characteristics that you desire that they have.

These factors could be anything from stock price to price-to-earnings ratio, and using them will give you more confidence in the trades that you are making.